Outsourcing
Specialist Organisation(Service organisation)
FlexibleSpecialist Organisation(Service organisation)
Flexible   ExpertiseSpecialist Organisation(Service organisation)
CostEffective   Flexible   Expertise Specialist Organisation (Service organisation)
Pros                             Cons       Specialist Organisation       (Service organisation)
Pros                                  Cons  Skillshortage?   Specialist Organisation            (Service organisation)
Pros                                  Cons  Skillshortage?   Specialist Organisation No            (Service organisation)W...
Pros                                  ConsQuality  Skillshortage?   Specialist Organisation No            (Service organis...
Pros                                  ConsQuality  Skillshortage?   Specialist Organisation No            (Service organis...
Pros                                  Cons Quality  Skillshortage?   Specialist Organisation  No            (Service organ...
Pros                                  Cons                                      Quality  Skillshortage?   Specialist Organ...
Pros                                  Cons                                      Quality  Skill                            ...
Pros                                  Cons                                       Quality  Skill                           ...
Pros                                  Cons                                       Quality  Skill                           ...
When not tooutsource?
When not to             outsource?•   Areas of judgement
When not to             outsource?•   Areas of judgement•   Non specialist areas
When not to               outsource?•   Areas of judgement•   Non specialist areas•   Frequent
When not to               outsource?•   Areas of judgement•   Non specialist areas•   Frequent•   Where no expertise is   ...
Audit Impact
Audit Impact•   Visit organisation
Audit Impact•   Visit organisation•   Scope - access denied?
Audit Impact•   Visit organisation•   Scope - access denied?•   Controls - better or    worse?
ISA 402
ISA 402•   Look at Materiality
ISA 402•   Look at Materiality•   If significant -    understand & Access    controls
ISA 402•   Look at Materiality•   If significant -    understand & Access    controls•   Look at reputation risk
ISA 402•   Look at Materiality•   If significant -    understand & Access    controls•   Look at reputation risk•   Documen...
ISA 402•   Look at Materiality•   If significant -    understand & Access    controls•   Look at reputation risk•   Documen...
ISA 402•   Look at Materiality        •   Any performance                                   standards?•   If significant - ...
ISA 402•   Look at Materiality        •   Any performance                                   standards?•   If significant - ...
ISA 402•   Look at Materiality        •   Any performance                                   standards?•   If significant - ...
ISA 402•   Look at Materiality        •   Any performance                                   standards?•   If significant - ...
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Outsourcing

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Outsourcing

  1. 1. Outsourcing
  2. 2. Specialist Organisation(Service organisation)
  3. 3. FlexibleSpecialist Organisation(Service organisation)
  4. 4. Flexible ExpertiseSpecialist Organisation(Service organisation)
  5. 5. CostEffective Flexible Expertise Specialist Organisation (Service organisation)
  6. 6. Pros Cons Specialist Organisation (Service organisation)
  7. 7. Pros Cons Skillshortage? Specialist Organisation (Service organisation)
  8. 8. Pros Cons Skillshortage? Specialist Organisation No (Service organisation)Waste
  9. 9. Pros ConsQuality Skillshortage? Specialist Organisation No (Service organisation)Waste
  10. 10. Pros ConsQuality Skillshortage? Specialist Organisation No (Service organisation)Waste RiskTransfer
  11. 11. Pros Cons Quality Skillshortage? Specialist Organisation No (Service organisation) Waste RiskTransfer NoNon core
  12. 12. Pros Cons Quality Skillshortage? Specialist Organisation No (Service organisation) Waste RiskTransfer NoNon core
  13. 13. Pros Cons Quality Skill Stuck inshortage? Specialist Organisation contract No (Service organisation) Waste RiskTransfer NoNon core
  14. 14. Pros Cons Quality Skill Stuck inshortage? Specialist Organisation contract No (Service organisation) Conflict Waste of Interest RiskTransfer NoNon core
  15. 15. Pros Cons Quality Skill Stuck inshortage? Specialist Organisation contract No (Service organisation) Conflict Waste of Interest RiskTransfer Cost? NoNon core
  16. 16. When not tooutsource?
  17. 17. When not to outsource?• Areas of judgement
  18. 18. When not to outsource?• Areas of judgement• Non specialist areas
  19. 19. When not to outsource?• Areas of judgement• Non specialist areas• Frequent
  20. 20. When not to outsource?• Areas of judgement• Non specialist areas• Frequent• Where no expertise is required
  21. 21. Audit Impact
  22. 22. Audit Impact• Visit organisation
  23. 23. Audit Impact• Visit organisation• Scope - access denied?
  24. 24. Audit Impact• Visit organisation• Scope - access denied?• Controls - better or worse?
  25. 25. ISA 402
  26. 26. ISA 402• Look at Materiality
  27. 27. ISA 402• Look at Materiality• If significant - understand & Access controls
  28. 28. ISA 402• Look at Materiality• If significant - understand & Access controls• Look at reputation risk
  29. 29. ISA 402• Look at Materiality• If significant - understand & Access controls• Look at reputation risk• Document contract terms
  30. 30. ISA 402• Look at Materiality• If significant - understand & Access controls• Look at reputation risk• Document contract terms• Accessibility to records
  31. 31. ISA 402• Look at Materiality • Any performance standards?• If significant - understand & Access controls• Look at reputation risk• Document contract terms• Accessibility to records
  32. 32. ISA 402• Look at Materiality • Any performance standards?• If significant - understand & Access • Extent of controls - controls errors? Monitored?• Look at reputation risk• Document contract terms• Accessibility to records
  33. 33. ISA 402• Look at Materiality • Any performance standards?• If significant - understand & Access • Extent of controls - controls errors? Monitored?• Look at reputation risk • Any indemnities in contract?• Document contract terms• Accessibility to records
  34. 34. ISA 402• Look at Materiality • Any performance standards?• If significant - understand & Access • Extent of controls - controls errors? Monitored?• Look at reputation risk • Any indemnities in contract?• Document contract terms • Get sufficient & appropriate evidence• Accessibility to records still

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